Monkey Wrench

Buffett's Soggy Logic on Guarantors' Ratings

Buffett did the same thing with default swaps. He kept mentioning in the media how crazy risky they all; and then low and behold his annual report shows huge activity in default swaps. He media comments raised the spreads on these contracts, which then serves his interests. He could charge more for them, reducing his risk and increasing his profits. All compliments of the business news media for free.